Rental Taxation

[alantj]

I have just received a Turkish tax bill for the rental income on our villa. This came as a bit of a surprise as by my reckoning we our costs for the year were around £2000 more than our rental income.

I would appreciate it if someone could post a summary of how costs and income are calculated, so that I can avoid similar surprises in future.   

Regards

Alan

Linkback: https://www.enjoykalkan.com/forum/index.php?topic=3687.0

[Em1]

Hi
I do not rent my place, due to the Turkish tax system. As far as I remember you were only allowed to claim a certain percentage against costs, which bore no relation to the actual costs.
I am sure someone may have more exact details
Em

[alimone]

We were told the percentage was 25% when we bought a couple of years ago, not sure if it has changed

[misty]

Now guys if your pulling in a healthy income from renting out you cant moan about paying local taxes.....we all moan about people dodging tax here....just think if you were MP''s you could nominate your place in Kalkan as your second residence 

[alantj]

Who said anything about doging tax, I currently seem to be paying tax on a loss.

 

[Kalkan regular]

I think the way our accountant worked out the tax payable was:-
* deduct 25% from the rental income
* as the apartment is jointly owned he halves what''s left, which is the rental income considered for tax for each of us
* we each get a tax free allowance (this year I think it is 2400tl)
* deduct the tax fee allowance from our rental income and that''s what we pay tax on (!5% up to 7800) I think).

We don''t pay much tax but we do pay a big accountants bill!!

[Em1]

Hi
Yes, I thought it unfair to have to pay an account, when I was going to earn less than the tax fee allowance, hence having no tax to pay.
Better not to rent me thinks!
Em

[Enjoy Kalkan]

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[MartynE]

Kalkan regular is correct. If your expenses exceed your income, your income must be very low - in which case you would still be unlikely to pay any Turkish tax on the rentals.  The Turkish system does not allow for mortgage interest, however, unless it comes within the 25% statutory deduction.

Remember that any Turkish tax you pay is offset against your UK income tax on the rentals. (We are all doing UK tax returns as well, aren''t we chaps)?

[Kalkan regular]

Yes and they don''t make the form too easy to fill in, even though it''s in English!

[TES]

Lots of advice already given but if you really want to understand your taxation liabilities and options there is a free download issued by the Turkish Government. It is for Foreigners with rental income in Turkey and the declaration needed to satisfy your obligations. It is written in English and can be downloaded from www.gib.gov.tr